OpenAI Acquires Jony Ive’s AI Startup io in $6.5 Billion Deal
Jony Ive io OpenAI deal sees OpenAI make a bold hardware push by acquiring Ive’s startup io in a $6.5B stock transaction.
What the Deal Means for AI and Consumer Hardware
This marks OpenAI’s biggest acquisition to date. It creates a new hardware division inside the company to build next-gen AI-powered devices. Along with the acquisition, OpenAI secures Ive’s team of former Apple designers, who helped build the iPhone, iPad, Mac, and Apple Watch.
Jony Ive Returns to the Spotlight
Jony Ive described the partnership with OpenAI CEO Sam Altman as the culmination of his decades of experience in design and innovation. Ive said, “Everything I’ve learned over the last 30 years has led me to this place.”
Ive left Apple in 2019 and founded LoveFrom, which now plays a central role in OpenAI’s design direction. Though LoveFrom will remain independent, it will design both software and hardware for OpenAI.
The Mission: Redefining AI Interfaces
Altman and I’ve aim to launch a completely new kind of device by 2026. While they haven’t revealed exact product details, the goal is clear — create AI-native hardware that goes beyond smartphones.
Altman said current products lack the right form factor for AI’s full potential. “It needs a new kind of computing form factor,” he said.
Who Is Behind io?
io was co-founded by Jony Ive, along with former Apple executives:
- Evans Hankey (ex-head of Apple’s hardware design)
- Tang Tan (led iPhone and Apple Watch design)
- Scott Cannon (co-creator of Mailbox app)
The team has around 55 engineers, developers, and manufacturing experts, now transitioning to OpenAI.
Strategic Implications for Apple
Apple shares dipped by 2.3% following the announcement. With Apple struggling to compete in AI and relying party on Chat GPT for its platform, this acquisition increases competitive pressure.
Altman said Steve Jobs would be “damn proud” of Ive’s latest venture.
Funding and Support
- OpenAI is paying $5 billion in equity.
- The rest of the valuation stems from a prior 23% stake.
- Backers of io include Laurene Powell Jobs’ Emerson Collective, Sutter Hill Ventures, and Thrive Capital.
Altman has no personal equity in io.
A Long-Term Vision
The new team will operate out of io’s workspace in San Francisco, continuing work started two years ago.
Ive compared the current moment to the early days at Apple before the iPod and iPhone. “I have felt that my most important work is ahead,” he said.
A New Generation of AI Devices
The planned products won’t replace smartphones but aim to offer new ways to interact with AI.
Altman emphasized that these devices won’t be derivative. Unlike the failed Humane Ai Pin or Rabbit r1, the goal is to deliver a category-defining product.
In conclusion
Consumer perceptions of artificial intelligence may change as a result of the OpenAI-io-Jony Ive collaboration. By 2026, the tech industry may witness a completely new class of AI-integrated gear thanks to Altman’s AI leadership and Ive’s renowned design abilities.
Source: Bloomberg
